European plastic pipes producer Wavin (Zwolle / The Netherlands; www.wavin.com) reported operating profits up 62% ,at EUR 115m, in 2005. EBITDA increased by 51%, to EUR 163m, on sales of EUR 1.33 bn, up 30% on 2004. Net profit rose by 13%, to EUR 53m. The company said it had achieved the earnings improvement through a combination of passing on raw material cost increases, attention to higher value-added products and a review of its position in low margin segments.

Despite only moderate growth being forecast for the European construction sector this year, Wavin sees the underlying trend in the business as favourable and expects to show another improved operation result and good cash flow in 2006. It warned, however, that net profit in the year will be affected by the interest costs on its new financing arrangements and its acquisition of Hepworth in 2005.

The company made good progress in both its strategic business units – Civils and Infrastructure (below-ground systems, where it is the European leader) and Buildings and Installation (above-ground products) – both of which showed organic growth of 11% in 2005.

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Wavin Corporate presentation 2006 as PDF document (841 KB)